TPG Growth to Acquire Discovery Midstream

Experienced energy investors acquire high-growth midstream company
with strong management team and excellent asset position

June 27, 2017 08:30 AM Eastern Daylight Time

DALLAS & SAN FRANCISCO & FORT WORTH, Texas--(BUSINESS WIRE)--TPG Growth, the middle market and growth equity platform of global
alternative asset firm TPG, announced today it has entered into a
definitive agreement to acquire Discovery Midstream (“Discovery”), a
Dallas-based provider of oil and natural gas gathering and natural gas
processing services in the southern portion of Colorado’s
Denver-Julesburg Basin. Discovery’s current management team will
continue to run the company post-transaction and is investing alongside
TPG Growth in this transaction. Additional terms of the transaction were
not disclosed.

Discovery’s assets are strategically located in Weld and Adams counties.
The company is currently constructing more than 120 miles of pipeline
and a 60 Mmcf/d natural gas processing plant, which is expected to come
online in the third quarter of 2017. The company plans to expand the
plant capacity to 260 Mmcf/d in 2018. Discovery’s system is supported by
long-term contracts with leading producers in the DJ Basin.

“In partnering with Discovery, we are backing a strong and experienced
management team that is building a cost-effective, full-service,
high-quality midstream platform in one of the most attractive basins in
the U.S.,” said Christopher Ortega, Partner at TPG. “Since inception,
Discovery has done an impressive job of building deep community
relationships in Colorado and maintaining a focus on safety, both of
which we look forward to continuing under our ownership. We have a long
relationship with the Discovery team and are excited to assist the
company in continuing its commercial success and growing the platform.”

“From grassroots development projects to operating and optimizing
midstream assets, we founded Discovery with a mission of providing
superior service and maximum value for our producers. We appreciate the
support from our existing equity partners in bringing Discovery to this
inflection point, and look forward to accelerating the company’s growth
over the next phase of value creation through our partnership with TPG,”
said Steven Meisel, Partner at Discovery.

“In partnering with TPG, we are exceptionally well positioned to
continue serving our existing customers and look forward to expanding
our system in this next phase of growth. TPG’s strong network of
industry relationships, strategic vision, and experience building
businesses of scale in the oil and gas space make them an ideal partner
to help us capitalize on the exciting growth opportunities that lie
ahead,” said Drew Chambers, Partner at Discovery.

The transaction is expected to close in the third quarter of 2017. TPG
Growth’s legal advisor for the transaction is Vinson & Elkins LLP.
Discovery’s financial advisor for the transaction is Evercore, and its
legal advisor is Weil, Gotshal & Manges LLP.

About TPG Growth

TPG Growth is the middle market and growth equity investment platform of
TPG, the global alternative asset firm. With more than $8.3 billion of
assets under management, TPG Growth targets investments in a broad range
of industries and geographies. TPG Growth has the deep sector knowledge,
operational resources, and global experience to drive value creation,
and help companies reach their full potential. The firm is backed by the
resources of TPG, which has more than $73 billion of assets under
management. For more information, visit www.tpggrowth.com.

About Discovery Midstream

Based in Dallas, Discovery is a full-service midstream company focused
on maximizing value and providing outstanding service to producers.
Discovery’s management team has more than 100 years of experience in
developing grassroots projects, optimizing assets and providing related
services in the major producing basins in the United States. For more
information, please visit www.discoverymidstream.com.